Brand equity refers to the commercial value added to one product or service by the customer's perception of its brand. Some brands have a higher brand equity and customers perceive them as high quality or luxury products, e.g. Mercedes Benz or Apple. While other brands are perceived as common or ordinary products with medium or low quality.
Two products may be identical or very similar, but the fact that a product's brand may be perceived as better than the other, allows a company to charge a higher price for it.
The fact that members of that particular community are willing to pay a large sum of money as much as $25,000 demonstrates their willingness to pay for clean air which is actually beneficial to the health because studies have shown that breathing in unclean air can lead to several respiratory illnesses of varying severity.
Marguerite starts a corporation. Her articles of incorporation specifically state that the corporation will work in the beauty products industry. Marguerite would like to take out a loan on the company's behalf. She can because of the implied powers of the corporation.
